Yes Bank FPO floor price set at Rs 12 per share; minimum bid lot 1,000 shares; check details

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Updated: Jul 10, 2020 2:45 PM

Struggling private sector lender Yes Bank, looking to raise up to Rs 15,000 crore through a follow-on public offer (FPO), said that it has set a floor price of Rs 12 per share for the FPO.

Financial institutions that had picked up stakes in Yes Bank in March to prevent the Yes Bank from collapsing and, thereby, causing a systemic crisis, are unlikely to bring in more capital in the next round of capital-raising.Yes Bank, in a regulatory filing said, that the capital raising committee of the bank’s board has approved floor price of Rs 12 per equity share while the cap price for the FPO is Rs 13 per share.

Struggling private sector lender Yes Bank, looking to raise up to Rs 15,000 crore through a follow-on public offer (FPO), said that it has set a floor price of Rs 12 per share for the FPO. The issue, which opens on July 15, will see India’s largest public-sector lender State Bank of India invest close to Rs 1,700 crore after the bank got a green light from its executive committee. Yes Bank has joined a long list of banks that are trying to raise capital from the market through various avenues as they try to make higher provisions to side-step any spike in NPAs arising after the loan moratorium period ends.

Yes Bank, in a regulatory filing said, that the capital raising committee of the bank’s board has approved floor price of Rs 12 per equity share while the cap price for the FPO is Rs 13 per share. Employees of Yes Bank, have a Rs 200 portion reserved for them in the FPO and will get a discount of Re 1 per share. “A minimum bid lot of 1,000 Equity Shares and in the multiples of 1,000 Equity Shares thereafter,” Yes Bank said. 

Watch: News with Financial Express July 10, 2020 | News Analysis by Sunil Jain, Managing Editor, FE

The capital raising committee of Yes Bank is also scheduled to meet a day before the FPO on July 14, 2020 for the purposes of allocation of equity shares to the successful anchor investors pursuant to the offer and for determination of the anchor investor allocation price. The issue will close on July 15. State Bank of India, the largest investor in Yes Bank has already secured approval from its executive committee to invest up to Rs 1,760 crore in the FPO. 

Earlier this year under the Yes Bank Reconstruction Scheme 2020, State bank of India along with 7 other financial institutions, that included HDFC, ICICI Bank and even Kotak Mahindra Bank invested in the private sector lender to save it from going bust. SBI invested Rs 6,050 crore, making it the largest investors. Amidst rising uncertainties, banks have been trying to shore-up capital with a long list of banks announcing plans to raise capital. ICICI Bank had announced plans to raise Rs 15,000 crore while PNB announced plans to sell shares via a QIP or a rights issue along with tier-2 bonds to raise Rs 10,000 crore. Shares of Yes Bank were trading over 5% lower at Rs 25.30 apiece on the BSE.

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